Oklahoma City-based GMX Resources Inc. plans to begin a drilling program in its Haynesville Shale and Bossier Shale holdings during 3Q2008. At 80-acre density, GMX estimates it would have five years of development on its 27,500 net acres. GMX plans to bump up its capital spending in 2008 to $271 million from $195 million, which would allow it to drill up to four to six net horizontal wells in the shale acreage. The new capital expenditure budget includes acreage acquisition costs, infrastructure build-out and equipment upgrades in East Texas and northwestern Louisiana. The company also increased its 2008 guidance for discretionary cash flow to $100 million, up from $80 million. Revenue is now forecast at $140 million, down from $125 million. In addition, production is seen to increase to 7.8 Bcfe in the second half of 2008 and is forecast to be 13.8 Bcfe for the full year. Daily production rates are expected to be 60 MMcfe/d by year’s end, up from previous guidance of 42 MMcfe/d.

GE Oil & Gas‘ PII Pipeline Solutions has installed its solar-powered ThreatScan sensors along an 11-mile section of a natural gas pipeline operated by El Paso Corp. in southeastern Houston to enable 24-hour real-time remote monitoring of the pipeline. The acoustical sensors are designed to reduce the risk of third-party damage to certain pipelines, including accidents involving construction machinery. The sensors are installed at specific locations along a pipeline in order to detect vibrations that could potentially signal an actual impact or a possible encroachment along a pipeline’s right-of-way. When a sensor detects vibrations, the data is transmitted via satellite to a ThreatScan call center in Houston, where the vibrations are analyzed. The operator is then notified to investigate whether there has been an actual impact that requires remediation or if there is a potential threat from a potential encroachment. GE Oil & Gas operates a similar call center at its headquarters site in Florence, Italy, to support European pipeline operators that use the sensors.

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